"Just Leave the Lecture Playing"... 'Gift Card Scheme' in Job Training Subsidies

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#. A 26-year-old woman identified only as A, who was preparing for a childcare teacher certification, was recommended an artificial intelligence (AI) course unrelated to the certification during a consultation about the Academic Credit Bank System. When she said she was not interested in AI, a counseling staff member told her, "The classes are 100% online, so you can just leave the lectures playing," and advised her to "watch them at double speed." The staff member also said that although she would have to pay KRW 80,000 out of pocket, she would receive a department store gift certificate worth KRW 230,000 upon completing the course. For A, who was worried about the cost of preparing for her certification, the gift certificate benefit stood out more than the course content.

#. B, a 23-year-old who was looking into web development courses through another institution, was also told about gift certificates. Planning to pursue a career in information technology (IT), B was considering whether to take a basic data analysis course she had already studied while applying for courses to earn the certifications she needed. She had been told that completing at least two online courses, each requiring an out-of-pocket payment in the KRW 10,000 to KRW 30,000 range, would earn her a gift certificate worth KRW 50,000. No separate exam or assignment was required. Playing at least 80% of the online lectures was enough to meet the completion requirement.

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Criticism is mounting that the purpose of the K-Digital Basic Competency Training (KDC) program, part of the government-funded National Tomorrow Learning Card, could be undermined as training providers recruit students by offering gift certificates worth as much as several times their out-of-pocket payments. There are concerns that course completion could become a formality aimed at obtaining gift certificates, rather than leading to actual learning or improved job skills.

According to the Ministry of Employment and Labor on October 8, the government allocated KRW 627.3 billion to the National Tomorrow Learning Card this year. The program provides government support for vocational training costs to help people find jobs, change jobs, or improve their job skills. Through the KDC program, the government plans to provide digital basic skills training to 66,000 people. With KRW 500,000 in training credits provided per person, the budget could total up to KRW 33 billion.

The KDC program provides basic training in digital and emerging technology fields, including AI, data analysis, and coding, for people who face difficulties finding or adapting to work because of a lack of digital skills. When it was introduced in 2021, it began with seven institutions and 20 courses, and its subject areas and participating institutions have gradually expanded. As of the first half of this year, 188 courses were being offered by 33 institutions. The number of students has also remained in the tens of thousands each year: 86,000 in 2023, 95,000 in 2024, and 72,000 last year.

Until 2024, students paid 10% of the training costs upfront and received a full refund of their out-of-pocket payment if they met certain requirements. The refund system was abolished last year. The aim was to reduce indiscriminate applications for free training, increase accountability for participation, and improve the quality of training and employment rates.

But now that the official refund system is gone, private training providers are offering gift certificates worth as much as or more than students' out-of-pocket payments as an incentive to complete courses. From the students' perspective, this can have an effect similar to a refund, as they can receive a greater financial benefit even after paying their share. A Ministry of Labor official said, "In-kind refunds are being arranged through recruitment agencies and other intermediaries, creating gaps in oversight," adding, "When reports are received, the relevant employment centers review whether regulations have been violated and take measures, such as revoking approval for the courses."

Experts say the policy's purpose of supporting the development of digital skills is undermined if people with little need for training enroll in courses and complete them only as a formality. Woo Seokjin, a professor of economics at Myongji University, said, "Getting people to take training they do not need by dangling gift certificates and then receiving government subsidies is clearly fraudulent receipt of benefits," adding, "Active enforcement against the providers is needed, as this wastes public funds and can lead to losses to the national treasury."

This content was produced with the assistance of AI translation services.